Local economy thriving

A report on the economy of southern Orange County ? including Newport Beach ? by Soka University economists paints a picture of a thriving region, with more high-wage jobs than almost any other place in the state ? but with high housing prices to match.

“South County, We’re Different,” written by Soka instructor Edward Feasel and graduate student Humroy Lopez, was presented Friday at a Laguna Beach meeting of the Coastal Chambers of Commerce. The report defined South Orange County as the area stretching from Newport Beach and Irvine to San Clemente.

Feasel and Lopez found that Newport Beach had one of the strongest economies considered in the region, with the second-highest retail sales total of the 12 cities studied.

“South County is different from Orange County, with a different attitude, different demographics and trends,” said Robert Ming, secretary of the Laguna Niguel Chamber of Commerce. “This is the first study we’re aware of focusing on South County. It’s a way to take the temperature of the community.”

Newport Beach boasts the highest average weekly pay of any of the cities ? $1,203 ? with Irvine a close second.

The report found, however, that the large number of well-paying jobs in the region is offset by the high cost of housing, which has tripled over the past six years.

Newport Beach came in second in the category of fastest-rising home prices, just behind Laguna Beach.

In Newport Beach, the median home price in 1990 was about $450,000, which rose to about $600,000 in 2000 and to $1.7 million in 2006. In Laguna Beach the median home price is now $1.8.

“This doesn’t really surprised me. Newport Beach is experiencing substantial value growth and all indicators show that it will keep rising,” Newport real estate agent Mark Whitehead said.

Feasel said the South County area enjoys a lower unemployment rate and higher wages than Orange County overall. “This is a very impressive regional economy, and I predict it will continue to achieve new heights in the future,” he said.

The region’s retail market is brisk: South County would rank ninth in the state ? ahead of San Francisco and Fresno ? if it were considered as a separate county.

Laguna Beach and Newport Beach, along with Irvine, have the highest levels of educational attainment among residents.

South County itself has a much higher percentage of college graduates among its residents than the rest of Orange County, ? with 47% of adults 25 and older having a college education or higher, compared to 26% in the rest of the county.

The median family income in Newport Beach in 1999 was $111,166.

Some at the meeting in Laguna Beach Friday worried that the housing price crunch, combined with high gas prices, would make it difficult to fill low-wage jobs on which many businesses in the region depend.

Supervisor Tom Wilson, who also spoke at the meeting, said he has been working to provide “workforce housing” ? a term he prefers to “affordable housing.”

“The median house price is out of reach of 89% of those seeking to buy, and we need to take steps to develop housing to attract and retain workers,” Wilson said.

? Reporter Dave Brooks contributed to this story